Forex for beginners, How to make money on Forex

What is Forex?

Forex is the international currency market. Its name is a commonly used abbreviation that stands for FOReign EXchange. Though still relatively young as compared to other financial institutions (it was only established in the 1970s), today Forex is the most popular and dynamically developing market.

The tremendous amount of more than 4 trillion US dollars is traded on the forex market every day, which exceeds the total turnover of all stock exchanges in the United States thirty-fold.

As any other financial market, Forex is based on trading a certain set of goods. On Forex this set of goods is represented by the national currencies of various countries.

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How to make money on Forex?

Currencies are traded in pairs, one against the other. For example, the EUR/USD quote represents the exchange rate of the euro to the dollar.

How to open a deal for USD 100,000 by depositing your trading account with just USD 100? It’s very simple!

When you open an account, you can select the leverage ratio of 1:1,000. This would multiply the volume of your trade by 1,000, from USD 100 to USD 100,000. USD 99,900 out of this amount constitutes the loan (leverage) provided to you by the broker, and USD 100 is your own investment. As one standard InstaForex lot equals USD 10,000, by using the leverage you can open a trading deal equivalent to 10 InstaForex lots (10 lots x 10,000 is 100,000).

By trading such a huge amount of money, you get a chance to profit from marginal exchange rate fluctuations. Even the slightest price movement such as 0.01 (from 1.2750 to 1.2850) will bring you a thousand dollar profit (100,000 x 0.01 equals 1,000).

Therefore, by taking all the opportunities our company has to offer, you can earn very good money even with a small deposit.

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Where to start?

The best thing you can do to start trading on Forex is to open a demo account.

A demo account is a special tool designed for training purposes. It is deposited with virtual money enabling a trader to practice trading in a risk-free environment and acquire professional skills without losing any real money. When you trade using a demo account, all the profits and losses you make are virtual while the trading experience you get in “combat” conditions is totally real. Moreover, you also get a chance to earn on a demo account by participating in one of the contests held by InstaForex, in which you can win real money prizes and receive your winnings on a live trading account.

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Six reasons to start trading with InstaForex

We offer:

forex learning course for beginners;

FAQ section of the website containing answers to frequently asked questions and basic information most relevant to forex beginners;